Rakesh Jhunjhunwala has one of the most successful stories of making valuable profits from stocks. His long-term strategy, making the most of bearish markets and a diversified portfolio in equities – has made him a billionaire. On Thursday, shares of Tata Group-backed Indian Hotels saw a near jump in Jhunjhunwala’s assets. 25 crores in a day. Stocks in the hotel and resorts space are likely to rise further on the quest for strong growth plans going forward.
on BSE, Indian Hotel end at up by 223.50 each 8.30 or 3.36%. At closing price, its market cap was 31,745.93 crore.
Shares of Indian Hotels remained low on Wednesday 215.20 each.
Indian Hotels is an ‘A’ Group stock on the BSE, and the index trades under the S&P BSE 200.
Till 31st March 2022, Rakesh JhunjhunwalaThe shareholding in Indian Hotels is equal to 1,57,29,200 equity shares or 1.11%. As per the shareholding pattern, he also holds 1,42,87,765 equity shares or 1.01% in the company through his wife Rekha Jhunjhunwala.
Both his and his wife’s portfolio are managed by Rakesh. Together, the couple holds 3,00,16,965 equity shares or 2.12% in the company.
Indian Hotels shares have increased compared to the previous day’s closing price. 8.30. From this Jhunjhunwala made a profit of approx. 24.914 crore (3,00,16,965 equity shares X 8.30) in one day trading session in the company.
As per Trendline data, Jhunjhunwala’s total holding value in Indian Hotels is 670.9 crores till date. Not only this, his wealth ranks seventh in the company after Fortis Healthcare, CRISIL, Tata Motors, Metro Brands, Star Health, and gems and jewelery giant Titan, which account for the majority of his wealth so far. ,
The stock of Indian Hotels has climbed up to 61.62 per cent in one year as compared to today. Last year on 23rd June the stock was only around 138.28 each on BSE.
As per the data, the big bulls started investing in Indian Hotels shares in June 2020. This was the time when the coronavirus pandemic led to a nationwide lockdown and severely disrupted hotel business activities. However, this also shows that Jhunjhunwala has been optimistic about the company’s shares.
In the last two years, Indian Hotels has emerged as a multi-bagger as its profit grew by 175.08%. stock was around 81.25 level as on June 23, 2020 as per BSE data.
Should you buy Indian Hotels shares?
In its FY 2012 annual report, Indian Hotels said it plans to execute its “Ahavan 2025” strategy, which essentially focuses on four key pillars, including 1) a total of 300+ across portfolio Accessing hotels, 2) looking at a consolidated EBITDA margin of 33%. With 35% EBITDA share from management contracts and new businesses as of FY26E, 3) achieving a 50:50 ratio between ownership/leasing and management contracting room keys and 4) building a net cash balance sheet as we pursue our growth plans to keep.
Adhidev Chattopadhyay, Research Analyst, ICICI Securities, said, “The Invoice strategy is an extension of the company’s earlier “Aspiration 2022” strategy, which focused on asset-light expansion and margin improvement.
According to the analyst, the company’s April and May 2022, revenues are 10% higher than pre-Covid levels and there is a continued pickup in leisure as well as business travel.
“We expect FY23E revenue and FY24E revenue to be at 104% and 122% pre-covid (FY20) levels respectively. The company had achieved Q3FY22 consolidated EBITDA margin of 29% and we build EBITDA margin of 32% versus FY24E The company’s guidance of 33 per cent till FY26E factoring in the inflation effect,” Chattopadhyay said.
Further, the analyst said, “We reiterate our BUY rating with a revised SoTP-based target price of Rs 284/share (earlier Rs 292), valuing the stock at 22x Jun’24E EV/EBITDA. The major risks to the market are fresh COVID waves. Demand is impacting and margins are impacted by cost escalation.”